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  • The price of The DXY was back en-route for a test of the neckline located around 96.60/70, a break of which would likely further pressure gold prices.
  • Gold took on the 23.6% Fibo down at 1302, with the price extending below the trendline support est. on 14th Feb in late Jan’s commencing uptrend.
  • Bears are well placed below the rising channel’s support at 1320 for a run to the 38.2% Fibo located at 1275, with the confluence of the late Jan support zone.
  • While shorter-term indicators are oversold, the daily RSI, MACD and, to some extent, stochastics lean bearish and allow for some potential room to test the mentioned Fibo support level – albeit, depending on price action in the DXY breaking the H&S neckline.

Gold daily chart

DXY 60 min chart